Conditions for tax service activities for foreign investors
The Tax Services sectors (CPC 863) in the WTO Schedule of Commitments are better understood through their functions. Specifically: Tax consulting, tax planning, tax control, .. through regulations that are allowed by law but still must be based on the principles and conditions of establishment as a tax agent. Foreign investors need to comply with the conditions for tax service activities in Vietnam according to the conditions of the WTO and the provisions of Vietnamese law.
What occupations does the tax service cover?
According to the WTO Schedule of Commitments, tax services include the following activities:
Business tax planning and consulting services (CPC 86301)
A service that advises businesses on how they can handle their business in order to minimize the impact of corporate income tax on their profits by taking advantage of all the benefits provided by the permitted law.
Exclusion: Similar consulting services but including preparing or reviewing various incomes and reports for clients listed in subsection (business tax preparation and review services).
Business tax preparation and review services (CPC 86302)
Services include preparing, reviewing for businesses the earnings and reports necessary for compliance with income tax laws and regulations and protecting these results if required by tax authorities prove. This service may include tax planning and control.
Business tax preparation and review services for individuals (CPC 8630)
Services include advising individuals on measures to minimize the impact of corporate income tax on their profits by taking advantage of all rights permitted by law and/or Prepare tax returns and reports required to comply with tax laws and regulations.
Other tax related services (CPC 86309)
Services include assisting businesses in income tax planning and control and preparing all documents required by law.
Conditions for foreign investors providing tax services in Vietnam
According to the WTO Schedule of Commitments
Within 01 year from the date of accession, the licensing will be done on a case-by-case basis and the number of service providers will be decided by the Ministry of Finance depending on the needs and the development of the Vietnamese market, and foreign-invested tax service providers are only allowed to provide services to foreign-invested enterprises and projects with foreign funding in Vietnam.
Conditions for providing tax services under Vietnamese law
Tax services are classified as tax consulting activities, supporting tax procedures within the scope of activities of tax procedure service businesses, therefore, to participate in this service business. In Vietnam, foreign investors need to consider and pay attention to the following conditions in the Law on Tax Administration 2019.
Tax service organization (hereinafter referred to as tax agent) is an enterprise established and operating in accordance with the law on enterprises, performing services as agreed upon with taxpayers. Enterprises that are eligible to provide tax procedure service business shall register with the Tax Departments of provinces and centrally run cities for a certificate of eligibility to provide tax procedure services.
Conditions for issuance of a Certificate of eligibility for business in tax procedure services include:
- Being an enterprise established in accordance with the law.
- There are at least 02 people who are granted practice certificates of tax procedure service, working full-time at the enterprise.
Foreign individuals who want to do business, provide tax services in Vietnam or establish or work as an employee at a tax service provider in Vietnam must have a tax procedure service practice certificate issued by the General Department of Taxation is granted.
Conditions for granting a tax procedure service practice certificate:
- Being a Vietnamese or a foreigner who is allowed to reside in Vietnam for one (01) year or more fully meets the following conditions:
- Not falling into the categories specified in Clause 4 – Article 105 of the Law on Tax Administration 2019 about those who are not allowed to work as tax agents (cadres, civil servants, people who have lost their civil capacity acts, people who are prosecuted for criminal liability). criminal liability….)
- Possess a college degree or higher in economics, finance, accounting, auditing, law (specializing in economic law) and have worked in this field for two (02) years or more up to the date of application submission.
With many years of experience in providing legal advice to foreign enterprises, Inco Minh Anh Law Firm – Law Firm is ready to advise, on behalf of foreign investors to carry out procedures with state agencies to conduct tax service activities, contact us via: